According to the analyst, the stock is holding key support at ₹1900 and has the potential to retest lifetime highs in the near term.

While HDFC Bank shares are undergoing mild consolidation, a sustained move above ₹1950 could reignite bullish momentum and set the stage for a potential retest of the stock’s lifetime high in the near term, according to SEBI-registered analyst Deepak Pal.

HDFC Bank’s stock touched a record high of ₹1,996.30 on June 6, following the Reserve Bank of India’s decision to cut the repo rate by 50 basis points — from 6% to 5.50% — along with a 100 basis point reduction in the Cash Reserve Ratio (CRR), bringing it down from 4% to 3%. The CRR cut is expected to release ₹2.5 lakh crore of liquidity into the banking system by November 2025

Despite profit booking pushing HDFC Bank into a consolidation phase, the stock has held firm near the ₹1900 mark, according to him.

Pal added that this could be seen as an encouraging sign of underlying investor confidence, especially in the face of broader market volatility and rising geopolitical tensions such as the Israel–Iran conflict.

The stock is currently trading between its 14-day and 55-day exponential moving averages (EMAs), suggesting a neutral to mildly bullish undertone, he noted.

Pal believes that HDFC Bank’s structure remains healthy as long as ₹1900 holds. A sustained move above ₹1950 could trigger fresh momentum, potentially rallying toward ₹1975–₹1980 and even a retest of the lifetime high soon.

He has suggested the buy-on-dips strategy and placed a stop-loss near ₹1900.

From a fundamental perspective, India’s largest private sector bank remains a strong entity. The bank posted a 6.7% year-on-year rise in Q4 net profit to ₹17,616 crore, supported by stable asset quality with a Gross Non-Performing Assets of just 1.33%. It also declared a dividend of ₹22 per share.

HDFC Bank boasts a solid capital adequacy ratio of approximately 18.8% and a consistent net interest margin of around 3.4%, reflecting its strong financial position, Pal added.

Backed by expanding digital capabilities, a large CASA base, and robust demand for retail and housing loans, the bank is well-positioned for steady growth, with reasonable valuations supporting its appeal as a long-term investment, he concluded.

HDFC Bank’s shares have gained 8% year-to-date (YTD).

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